Iternational Marketing

Running Head: International Marketing

International Marketing

International Marketing

In a world where consumer demands change as quickly as advances in technology and communication, it is no wonder that companies are entering into a global market. In order for companies to stay on top and be the best in their industry, it is no longer enough to exclusively sell to a domestic market. The real challenge for companies remains in their ability to successfully market their products abroad. While some basic principles of marketing remain, such as consideration of price, promotion, place, and product, a whole other set of rules is introduced when speaking of international marketing. (International Marketing, 2002)

The stakes of companies entering into a global market are much higher than those that choose to stay within their country’s borders. Both opportunities and risks must be evaluated. Part of determining whether or not there exist opportunity in any given region includes gathering data. With the internet being as readily assessable as it is today, it is no longer necessary for companies to send representatives to foreign lands to gain necessary information about prospective markets. Businesses can obtain information about any country from virtually anywhere in the world. Specific things that are looked at include GNP, per capita income, population, income distribution, economic growth rates, and levels of economic development. (Uva)

One particular thing that marketers look at when figuring out how to introduce products is market size. This is determined by sales potential. Market size is a broad subject with several factors included in it. Obsolescence and leapfrogging of products often happens in countries. Generations of certain technologies are passed right over. In these cases marketers waste no time in trying to promote a product that consumers have no interest or need in buying. The price of products is something that is considered heavily as well for obvious reasons. Prices for both essential and nonessential products have the potential to impact consumer buying patterns. If necessary goods carry a higher price tag, it leaves less discretionary income for non-essential, more luxurious items. Understanding the idea of income inequality may also prove to be important when determining the price of products. It is important to understand that middle and upper-income people may also live in areas where the per capita income is low. (Onkvisit, Shaw, 2004)

The analysis of substitution of products is also critical for marketers to do. Some consumers, based on local conditions may be more likely to consider other products and services in replace of others. One example a source gave was mass transportation. In cities where there is a high population density, inhabitants may opt for such type of transportation instead of individually owned automobiles. This would be vitally important for car companies to be aware of. (Onkvisit, Shaw, 2004)

Lastly, but perhaps most important to take into consideration are cultural tastes and differences. One of the worst things a company can do is market to a country in which they have failed to do their research. There are countless examples of companies making costly marketing blunders when moving abroad. The importance of being aware of cultural norms and taboos can never be underestimated. Just as in the United States different people have different demands, so it is true in other countries as well. One can’t assume when marketing globally that all citizens of a particular nation will have the same consumer patterns. Based on differences in cultural values and tastes these will obviously vary. All of these factors, when researched properly, work together to form a successful marketing strategy. Steps that specific companies and countries are taking to make advances in international marketing can be observed and learned from. (Mooij, 2005)

The population of China is now 1.3 billion; by far the largest population group in the world today. It is important that business people all over the world become aware of this country in the Far East. China has been perceived as a poor, communistic country that does not know how to make money. However, China may become one of the wealthiest countries in the world sooner than you many think. (Bennett, 2005)

The culture of China is changing, especially the way the Chinese eat. This is due to the increase